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The European Union have announced they will adopt Donald Trump's steel tariffs, effectively doubling levies on foreign steel to 50% in a move described as "an existential threat" to the industry in Britain.

Unprecedented Crisis for British Steel Exports

Given that 80% of British exports going to the European Union, this change poses the UK steel industry's biggest ever challenge, as stated by the lobby group representing the industry.

New EU Measures and Regulations

Through its proposal submitted to the European parliament this week, the EU executive additionally suggested reducing the existing quota for tariff-exempt steel and requiring foreign suppliers to declare the origin of steel production to stop Chinese producers sneaking products in through third nations.

The European steel industry stood at the brink of failure – these measures safeguard it so that it can invest, decarbonise, and regain competitiveness.

Overhaul of Current Framework

These measures are designed to replace a quota system that has been functioning for the last seven years and which is set to expire in 2026 and is now considered ineffective. To do nothing could have been "catastrophic" for the sector, a European official said.

Industry Response and Concerns

Nevertheless, Gareth Stace, from the trade association British Steel, said EU doubling its tariffs would pose "the biggest crisis the UK steel industry has ever faced".

He called on the government to "acknowledge the urgent need to implement domestic protections to defend" the British steel sector – which is affected by a twenty-five percent tariff from Trump recently – from the risk of vast quantities of world steel diverted away from US and European markets.

This surge in foreign steel "could be terminal for many of our remaining steel companies.

Labor and Political Pressure

Union leaders, assistant general secretary at labor union the industry union, said the new measures represented "an existential threat" to British steel production.

Labor and business representatives urged Keir Starmer to begin talks immediately with the EU on country-specific tariff exemptions, noting that the UK was now the European Union's No 1 export market.

Broader Context

Industry leaders in the EU have also been warning for months that the European steel sector faces being "wiped out" through the increased duties on exports to the US along with rising energy prices and low-cost Chinese imports.

The steel industry on both sides of the Channel is described as a essential sector, providing basic materials in everything from skyscraper structures, renewable energy equipment and transport infrastructure to household appliances and cutlery.

Adoption and Next Steps

These proposals require approval by EU nations and the European parliament, with the European Commission president urging national governments and European parliament members to act fast in backing the proposal.

If the plan is ratified, the European Union will reduce its existing tariff-free allowance by 47% to 18.3 million tons a annually, a volume previously recorded in 2013. It will impose a 50% tariff on foreign steel beyond the quota and require nations shipping to the bloc to state the production origin to prevent circumvention of the measures.

Exemptions and International Cooperation

These European nations will not be subject to import limits or tariffs due to their strong economic ties in the EEA, the European Union has confirmed.

Alongside the proposal, the European Union is pursuing a "metals alliance" with the US to protect their national industries from excess production.

The European Union needs to act now, and firmly, before all lights go out in large parts of the EU steel industry and its value chains.